Emerging Stocks Drop, Head for Biggest Weekly Loss Since

May 11 (Bloomberg) -- Emerging-market stocks posted the
largest weekly loss since November, as Chinese and Indian
production data and a $2 billion JPMorgan Chase & Co. trading
loss spurred concern global growth will falter.

The MSCI Emerging Markets Index lost 1 percent to 971.01 at
the close in New York to push its weakly retreat to 4.1 percent,
the most since the week ended Nov. 25. Energy, industrial and
information technology companies led decliners for the five days
as China Shipping Container Lines Co Ltd. plunged 20 percent.
OAO MRSK Holding, the Russian state-run power distributor, slid
for a sixth week. Brazil’s Bovespa retreated 2.3 percent.

Chinese industrial output increased 9.3 percent in April
from a year earlier, lower than the 12.2 percent median estimate
of 32 economists surveyed by Bloomberg. In India, production
declined 3.5 percent from a year earlier, less than the 1.7
percent gain projected by analysts in a Bloomberg survey. The
U.S. producer price index dropped 0.2 percent in April, the
first decline in four months. JPMorgan said “egregious
mistakes” and “sloppiness” caused losses for the firm.

“It’s been a rough month and a half for emerging-market
equities and a lot of that has to do with continued concerns out
of Europe and slower-paced economic data out of the U.S. and the
emerging-market world,” Tim Hall, who manages about $700
million at Deltec Asset Management, said by phone from New York.
“Then you have the JPMorgan incident and that’s a wet rag on an
already pessimistic market.”

The ‘Worst Flows’

The developing-nations gauge declined for an eighth
straight week to its longest weekly losing streak since 2008.
The MSCI Emerging Markets Index has fallen 10 percent from this
year’s March 2 high.

The index trades at 10.2 times estimated earnings and has
added 6 percent this year, compared with the 12.1 multiple for
the MSCI World Index of advanced nations, which has added 5.1
percent in 2012.

Emerging-market equity funds posted outflows of $1.1
billion in the week ended May 9 on renewed concerns about Europe
and Chinese growth, Citigroup Inc. analysts led by Markus Rosgen
wrote in a report today, citing data compiled by EPFR Global.
The “worst flows” were from the Central and Eastern Europe,
Middle East and Africa region, while Asia ex-Japan had outflows
of $81 million.

Brazil’s Bovespa

Brazil’s Bovespa benchmark gauge fell for a third week.
Cyrela Brazil Realty SA Empreendimentos e Participacoes
retreated 5.3 percent and was among leading decliners for the
week.

MRSK Holding fell 9.2 percent in Moscow following an
Interfax report that it may be transferred under the management
of Federal Grid Co., which dropped 8.9 percent. Energy Ministry
spokesman Dmitry Klokov did not immediately return calls seeking
comment, while MRSK’s press service didn’t respond to an e-mailed request.

Russia’s Micex Index grew 0.4 percent, its first five-day
gain in three weeks. OAO Novatek, Russia’s second-biggest
natural-gas producer, reported first-quarter profit increased 13
percent as output and the price of the fuel rose. Shares of the
company grew 4.9 percent in the past week, and was among leading
stocks in the Micex Index.

Asian Stocks

South Korea’s Kospi index and Taiwan’s Taiex Index both
fell more than 3 percent during the week.

Agora SA, Poland’s largest publicly-traded publisher,
reported a net loss in the first quarter. The company’s shares
retreated 2.8 percent for the week. The WIG20 Index fell 1.4
percent to a second weekly decline.

“Industrial production for emerging nations is declining
faster than expected amid the slackening global demand
environment,” Aneesh Srivastava, who oversees about $470
million as chief investment officer at IDBI Federal Life
Insurance Co. in Mumbai, said by phone.